"It really shifts the basis of competitive advantage from the mechanical parts of the car to the electronic parts," Brian Johnson, Senior Auto Analyst at Barclays told CNBC.

Big tech companies are some of the players at the forefront to benefit. "Google's Android is really happy to put its operating system out there. We think Apple will build a car with a world-class infotainment experience, defined by software."

It's not just the driving experience predicted to improve. Johnson said up to 80% of accidents could be eliminated as semi-autonomous driving continues to grow.

Coneyl Jay | Stone | Getty Images

The connected car will also free up time for drivers, providing a richer infotainment experience. Johnson thinks digital screens in cars will be accessing the same mobile apps being run on your phone and ultimately serve as a third or fourth screen in a consumer's life.

Johnson predicts three companies that will benefit from the future of the smart car, including Mobileye, a player in mono-camera safety systems, Harman, a player in infotainment and audio products and Delphi, a supplier of various parts for the automotive industry.

Barclays current global top pick is Mobileye as they see the company poised for revenue growth and expect the share price to recover.

The development of car connectivity has Johnson surprised how quickly the tech and auto sector have intersected. "I never would have thought three years ago that I'd be cooperating with my Google and Apple analyst to write notes about the automotive industry," Johnson said.